The purpose of this research is to analyze the influence of good corporate governance (institutional ownership, independent commissioners’s proportion, and audit committee) and also leverage to the earnings management. Earnings management is measured by discretionary accruals using Modified Jones Method.
Secondary data collection is done by downloading the data banking companies financial statements listed on Indonesia Stock Exchange. Sampling method used in this study is the method of purposive sampling is the sampling method based on certain criteria. The number of samples used in this study based on the criteria of a total of 25 banking companies in the period 2011-2013. So the observation data obtained at 75 observation data. Analytical techniques used were descriptive statistics and using multiple linear regression to test the hyphotesis. Hypothesis testing is using F test and t test. Data used in this research is annual
and financial report that is published through website www.idx.co.id
The result show that simultanoeusly institutional ownership, independent commissioners proportion, audit committee, and leverage have no significant influence to the earning management. Partially, institutional ownership and audit committee have significant influence to the earning management, but independent commissioners proprotion and leverage have no significant influence to the earning management.